What is Reverse Charge Mechanism? Normally the taxable person providing supplies to customers is responsible for charging VAT and also liable to pay the VAT charged to the tax authority. In case of Reverse Charge Mechanism (RCM), it is the buyer of goods/ services that levies VAT to itself instead of the supplier of the goods/ services. The major change between a reverse and forward charge is the change in responsibility with regards to paying VAT as in a reverse charge the responsibility is shifted from supplier of the goods/ service to the buyer of it. When Reverse Charge Mechanism becomes applicable in the UAE? The RCM is applicable in the UAE when a taxable person operating its activities in the UAE purchases goods or receives services from outside the GCC implementing states. Under this mechanism the taxable person will not be required to pay tax when at the time of importing goods or services. Reporting VAT transaction under Reverse Charge Mechanism In a reverse charge the buyer is the one that is responsible for reporting the VAT transaction. The buyer receiving a taxable supply using RCM is responsible for reporting both the VAT on purchases (input VAT) and VAT
Have conversations with your bookkeeper about how matters are going. You don’t want to know all the fine details of doing the numbers entry and reconciliations; however, you need to be able to examine your profit & Loss declaration and Balance Sheet at a simple level to know how things are going. In case your bookkeeper can’t provide you with this information accurately and in a well-timed manner, there can be something incorrect. In case you are registered for VAT, you simply need to be a tax expert, not only a bookkeeper. A bookkeeper must hold a positive level of training and experience, professional indemnity coverage, continuing expert education, and comply with a code of conduct. A bookkeeper who isn’t always a registered VAT Agent cannot promote it that they provide VAT offerings, and this includes putting in accounting software program and determining default VAT codes, statistics entry, and reconciliations to determine a VAT legal responsibility, filling in activity statements, and ascertaining withholding responsibilities. Is your bookkeeper pre-emptive? Outstanding movement is something that’s been coming for quite a few months. Has your bookkeeper informed you approximately about your obligations? Have they assisted you to turn out to be exceptional movement
Mark Carney, the chief of Bank of England stated that almost 15 million of the existing jobs in Britain could be automatized in a period of time, this includes a lot of professions including accounting in its entirety. In response to the statement by Mr. Carney, John Williams, the head of ACCA (Association of Chartered Certified Accountants) cited: “When it comes to automation having a big impact on automating the profession of accounting, Mr Carney stands correct. However, I cannot agree with the belief that the ‘rise of robots’ indicates towards the end of accounting. If artificial intelligence really indicated towards the end of accountants, it would also indicate the end of central bankers! “The robotic process automation is basically referring to a software that is written in order to perform process that are repetitive, as well as interacting with several applications, all of this is done under the control of a human manager. It is only natural step in the evolution of how finance changes, but it is neither good when it comes to creating relationships, nor it has the ability to replace the systems or the staff. “As of the now, the profession of accounting is facing a
No matter how difficult it is to confirm it, but there have been statements in the past that state that 80 percent of the data in the world has been created in just past 2 years. The way data has developed has changed our lives, however, not in the way we are serving as consumers. The time of big data is also playing how a business operate, allowing the business runners to have a lot more insight to their customer than it was possible before. Apart from the customers, the same rule is applying to the suppliers, as well as their business partners and their own business operations. It is safe to say that when it comes to big data, we have barely scratched the surface as far as the advantages that big data provides to a business is concerned. The technology and analytics software are giving a new high to a person’s ability to tap into information. As a common example, it is like creating an engine that is a lot more powerful than what the world has seen, however, at the same time, the remaining vehicle must be ready to have that engine installed in it, in order
According to the announcement made by UAE Ministry of Energy, the fuel prices have been reduced for the entire month of December. Starting from 1st December, the Super 98 will be priced at Dhs1.8 per liter, this is a 5.26 percent down from the price in November which was Dhs1.90. As for the Special 95 it will now cost Dhs1.69, that is a 5.6 percent from the previous Dhs1.79, lastly the E Plus will now cost Dhs1.62, instead of the 1.72, seeing an overall 5.8 percent decline. UAE Ministry of Energy also cut down the cost of diesel to an impressive Dhs1.81 from the Dhs1.91 back in November, representing a 5.2 percent decline. The prices of oil are expected to rise globally mainly because the OPEC member countries are coming closer to deal that will cut the production. There has been a 7 percent jump in Brent Crude Futures, making each barrel cost around $50, the jump happened after Khalid al-Falih, the Saudi Energy Minister made a statement about how the kingdom is prepared to take a “big hit” on the production of oil.